ACCN 2010 Chapter 11 Quiz

ACCN 2010 Chapter 11 Quiz | Tulane University

 Question 1

The amount of stock that may be issued according to the corporation's charter is referred to as the 

authorized stock.  

issued stock.

outstanding stock.

unissued stock.

 Question 2

The date on which a cash dividend becomes a binding legal obligation is on the 

declaration date.

date of record.

last day of the fiscal year-end.

payment date.

 Question 3

The two ways that a corporation can be classified by purpose are 

general and limited.

publicly held and privately held.

state and federal.

profit and not-for-profit.

 Question 4

The acquisition of treasury stock by a corporation 

has no effect on total assets and total stockholders' equity.

requires that a gain or loss be recognized on the income statement.

decreases its total assets and total stockholders' equity.  

increases its total assets and total stockholders' equity.

 Question 5

Which one of the following would not be considered an advantage of the corporate form of organization? 

Separate legal existence.

Limited liability of stockholders.

Government regulation.  

Continuous life.

 Question 6

If common stock is issued for an amount greater than par value, the excess should be credited to 

Legal Capital.

Paid-in Capital in Excess of Par Value. .  

Retained Earnings.

Cash.

 Question 7

The number of shares of issued stock equals 

authorized shares minus treasury shares.

outstanding shares plus authorized shares.

unissued shares minus outstanding shares.

outstanding shares plus treasury shares.